Question:

My company’s business premises has a spare room. Can my
company purchase a cross trainer and some other fitness equipment for staff to
use?

Answer:

An employer can provide sporting or recreational benefits
tax-free to its employees, or any member of their family and household,
provided that the benefits are not on an excluded list and the following
conditions are all met:

1. The facilities are available generally to the employees of
the employer.

2. They are not available to members of the public generally.

3. They are used wholly or mainly by persons who have a right
to use them as employees (they do not need to be employed by the same
employer).

But!

This exemption does not allow an employer to hand out
membership cards for the local gym and sports club, but it does allow an
employer to rent or lay on its own facilities or join with other employers to
set up facilities for all to use.